Desperate to be debt free

MayGirl

Hi everyone, I'm new to here!! I'm Helen, and am 24, and in serious debt.

What I pay out each month, in debt and also bills almost takes up my whole salary (which is a pathetic 780 after tax/insurance each month). I'm desperate to get out of debt, but I'm not even making a dent in it currently.

I have a 7500 loan with HSBC (5 yrs repayment, 18months into it) - which has PPI on it. I also have a CC with them, and a Virgin CC totalling about 5000. I also have a Next Directory account with 750 on it.

Both of my CCs have PPI on them, but Next doesnt. I am seriously considering cancelling the PPI's on them, so that more of what i pay actually pays the debt.

i am also considering action against HSBC, concerning the PPI on the loan - when i choose and signed for the loan, i was told that i would not get it unless i took the PPI - from what i gather, this isnt actually allowed?!

Any words of wisdom would be much appreciated. Thanks x

davefcuk

Hi MayGirl

Firstly check out the details of your PPI, you may not believe it but if you actually read the fine print there are so many exceptions its often worthless. So far I have not found one that covers my employment so straight away I was missold as it didn't cover me. If you don't need it or aren't covered cancel it.

In relation to being told you needed to take PPI to get the loan this is a common trick read Martins page on reclaiming and you'll see this was a blatend example of a missold policy.

You need to get a hold of it before the defaults start rolling in as I was in a similar position to you and have been paying the price for six years.
Contact all the companies involved see if they can help you out. Do it in writing and explain your circumstances.

Maybe consider contacting the Citizens Advice Bureau or the National Debt line they can help and with the right help you'll feel so much better.

The best advice I can give is know your rights and empower yourself by taking control.

Best thing I have ever done was this site and as a result I found out through using Martin's advice that there was nearly £1000 that I had overpaid on old loans.

Keep up the fight and best of luck

jak

Get rid of the PPI! If you really want loan insurance then take it out seperately! M Uch cheaper for better cover!
J
X

GirlRacer_2

I agree with Jak here. Cancel the PPI. Can you not change the CC's to 0% balance transfers (that's if your paying interest on them).

MayGirl

I've tried too, but it seems my rating isnt good as I got rejected

Am currently working on a letter to rid of the PPI, this forum is so helpful, and i'm very grateful for all your advice

sophie27

Hello!

Welcome to MSE! You should read the sticky at the top of the forum and post a SOA which would list your incomings/outgoings and some of the experts on here could give you some advice on reducing.

Soph x

Bayblue

Hi Maygirl

You might not even need to write a letter to cancel you PPI insurance. I cancelled mine a few weeks ago with just a phone call- it was on an HSBC card. Do make sure though, that you have other insurance or ways to pay IF anything happens to your job or your health. Hope you don't think I'm being alarmist by saying this, it's just that I was made redundant this year and although PPIs get a lot of bad press I was glad that I had insurance , it took away some of my worries at least.

You debts are obvious worrying for you but they are not unmanageable, and you'll get some great ideas and advice on this forum. Start by posting an SOA when you can and everyone can see where you can make some changes and savings.

Numpty_Monkey

:hello: Hi MayGirl
Welcome aboard the greatest forum you will ever come across:money:
I can't do the fancy links (if I asked someone would tell me:D )

A link to The Newbie Guide
http://forums.moneysavingexpert.com/showthread.html?t=562271

A link to Martins Guide about claiming PPI, template letters and info):money:
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

A link to the SOA calculator:D :eek: :A
http://forums.moneysavingexpert.com/showthread.html?t=806277

A link to the DFW Dictionary:A :beer: :j
http://forums.moneysavingexpert.com/showthread.html?t=672601

The most important thing about here is that there are no silly questions :A

Andy xx